US stocks ultimately failed to recover from a kneejerk move on the downside following further hawkish comments from the Fed, we’ve said over recent days equities already appeared to have priced in higher rates as they continue to absorb bad news on the macro front – this is clearly another test. At this stage, we see no reason to believe equities won’t continue to grind higher toward our target area.
- Our preferred scenario remains the S&P500 will test the 4300 area in the coming weeks/months, or around 4% higher.
MM remains mildly bullish on US equities through February
Add To Hit List
European equities continue to rally strongly with the French CAC and UK FTSE both making fresh all-time highs overnight, we called this move which has been supportive of the ASX but importantly moving forward MM has not been advocating chasing the breakouts.
- Statistically fighting breakouts by stocks is a dangerous game but in our opinion, the risk/reward is not exciting for buyers at this stage of the cycle.
MM is cautiously bullish toward European indices
